Charities are being invited to give their views on a new version of the Statement of Recommended Practice (SORP), the framework for charity accounting and reporting.
In March this year, the Financial Reporting Council (FRC), the independent regulator that sets the standard for corporate reporting and monitors and enforces accounting and auditing standards, issued a new financial reporting standard that will form the basis for accounting periods starting on or after 1 January 2015.
For the first time, this new standard addresses some key issues involved in charity accounting and reporting.
The Charity Commission and the Office of the Scottish Charity Regulator, which together form the SORP-making bodies for UK charities, have now drafted a new SORP to incorporate the new reporting standard.
It also addresses the needs of smaller charities that choose to continue reporting under an existing Financial Reporting Standard for Smaller Entities. The new SORP has been written in a modular style that the authors hope will make it easier for charities to identify the parts that apply to them.
Consultation on the draft SORP will close on 4 November. Charities wishing to find out more, or to contribute to the consultation, can visit www.charitysorp.org.
At Nicklin’s, our charities team can provide expert advice to charities seeking clarification when the new SORP is released and its implications for them. For more information, please contact us.